Mobile Phones, Institutional Quality and Entrepreneurship in Sub-Saharan Africa

Technological Forecasting and Social Change, 131( June), pp. 183-203 (2018).

38 Pages Posted: 14 Nov 2016 Last revised: 17 Apr 2018

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Jacinta Nwachukwu

Coventry University

Date Written: November 12, 2016

Abstract

This study investigates the role of mobile phones in governance for doing business in Sub-Saharan Africa with data from the period 2000-2012 by employing the Generalised Method of Moments. Three broad concepts of governance are explored, namely: (i) political (comprising voice & accountability and political stability/no violence), (ii) economic (involving government effectiveness and regulation quality) and (iii) institutional (including corruption-control and rule of law). Ten dimensions of entrepreneurship are considered. Two main findings are established with respect to the net effects of the interaction between mobile phones and governance dynamics. They are (1) reduced cost of business start-up procedure, the time to build a warehouse and the time to resolve an insolvency; (2) increased start-up procedure to register a business; the time to enforce a contract; the time to register a property and time to prepare and pay taxes. Implications for theory and policy are discussed.

Keywords: Entrepreneurship; Knowledge Economy; Development; Africa

JEL Classification: L59; L98; O10; O30; O55

Suggested Citation

Asongu, Simplice and Nwachukwu, Jacinta, Mobile Phones, Institutional Quality and Entrepreneurship in Sub-Saharan Africa (November 12, 2016). Technological Forecasting and Social Change, 131( June), pp. 183-203 (2018).. Available at SSRN: https://ssrn.com/abstract=2868228 or http://dx.doi.org/10.2139/ssrn.2868228

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Jacinta Nwachukwu

Coventry University ( email )

Priory Street
Coventry, CV1 5FB
United Kingdom

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